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RELL

Richardson Electronics NasdaqGS:RELL Stock Report

Last Price

US$15.50

Market Cap

US$211.8m

7D

8.7%

1Y

82.6%

Updated

26 Jun, 2022

Data

Company Financials +
RELL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends3/6

RELL Stock Overview

Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America.

Richardson Electronics Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Richardson Electronics
Historical stock prices
Current Share PriceUS$15.50
52 Week HighUS$16.24
52 Week LowUS$7.20
Beta0.60
1 Month Change10.79%
3 Month Change26.02%
1 Year Change82.57%
3 Year Change176.79%
5 Year Change159.63%
Change since IPO40.91%

Recent News & Updates

May 11

Richardson Electronics: A New-Age GE, Growth Conglomerate In The Making

Richardson Electronics has widely outperformed the U.S. equity market on the back of stellar underlying growth characteristics in 2021-22. The invention of an ultracapacitor to store energy for windmills could support another stretch of oversized gains for investors. Trading near its net asset liquidation value, with more cash than total liabilities, downside appears limited. An above-average 2.0% dividend yield is noteworthy and desirable from a high-growth investment holding.

Shareholder Returns

RELLUS ElectronicUS Market
7D8.7%4.5%6.6%
1Y82.6%-19.7%-18.4%

Return vs Industry: RELL exceeded the US Electronic industry which returned -19% over the past year.

Return vs Market: RELL exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is RELL's price volatile compared to industry and market?
RELL volatility
RELL Average Weekly Movement7.2%
Electronic Industry Average Movement7.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: RELL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RELL's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1947389Edward Richardsonhttps://www.rell.com

Richardson Electronics, Ltd. engages in the power and microwave technologies, customized display solutions, and healthcare businesses in North America, the Asia Pacific, Europe, and Latin America. The company’s Power and Microwave Technologies Group segment provides engineered solutions, power grid and microwave tubes, and related consumables; technical services for microwave and industrial equipment; flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment; customized display solutions; and power conversion and RF and microwave component for broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology applications. Its products are used to control, switch, or amplify electrical power signals, as well as are used as display devices in alternative energy, healthcare, aviation, communications, industrial, marine, medical, military, scientific, and semiconductor markets.

Richardson Electronics Fundamentals Summary

How do Richardson Electronics's earnings and revenue compare to its market cap?
RELL fundamental statistics
Market CapUS$211.75m
Earnings (TTM)US$11.53m
Revenue (TTM)US$213.46m

18.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RELL income statement (TTM)
RevenueUS$213.46m
Cost of RevenueUS$145.58m
Gross ProfitUS$67.88m
Other ExpensesUS$56.35m
EarningsUS$11.53m

Last Reported Earnings

Feb 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.84
Gross Margin31.80%
Net Profit Margin5.40%
Debt/Equity Ratio0%

How did RELL perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RELL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RELL?

Other financial metrics that can be useful for relative valuation.

RELL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA10.5x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does RELL's PE Ratio compare to its peers?

RELL PE Ratio vs Peers
The above table shows the PE ratio for RELL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.1x

Price-To-Earnings vs Peers: RELL is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (13.1x).


Price to Earnings Ratio vs Industry

How does RELL's PE Ratio compare vs other companies in the U.S. Electronic Industry?

Price-To-Earnings vs Industry: RELL is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the US Electronic industry average (17.6x)


Price to Earnings Ratio vs Fair Ratio

What is RELL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RELL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio24.7x

Price-To-Earnings vs Fair Ratio: RELL is good value based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).


Share Price vs Fair Value

What is the Fair Price of RELL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RELL ($15.5) is trading below our estimate of fair value ($96.42)

Significantly Below Fair Value: RELL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: RELL is good value based on its PEG Ratio (0.6x)


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Future Growth

How is Richardson Electronics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RELL's forecast earnings growth (31.3% per year) is above the savings rate (1.9%).

Earnings vs Market: RELL's earnings (31.3% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: RELL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RELL's revenue (13.7% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: RELL's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RELL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Richardson Electronics performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


39.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RELL has a high level of non-cash earnings.

Growing Profit Margin: RELL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RELL has become profitable over the past 5 years, growing earnings by 39.6% per year.

Accelerating Growth: RELL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RELL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (33%).


Return on Equity

High ROE: RELL's Return on Equity (8.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Richardson Electronics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RELL's short term assets ($147.8M) exceed its short term liabilities ($37.9M).

Long Term Liabilities: RELL's short term assets ($147.8M) exceed its long term liabilities ($3.2M).


Debt to Equity History and Analysis

Debt Level: RELL is debt free.

Reducing Debt: RELL has not had any debt for past 5 years.

Debt Coverage: RELL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RELL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Richardson Electronics's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RELL's dividend (1.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: RELL's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (4.24%).


Stability and Growth of Payments

Stable Dividend: RELL's dividends per share have been stable in the past 10 years.

Growing Dividend: RELL's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.8%), RELL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: RELL is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

10.2yrs

Average management tenure


CEO

Edward Richardson (79 yo)

32.75yrs

Tenure

US$1,230,517

Compensation

Mr. Edward J. Richardson has been the Chairman, Chief Executive Officer and President of Richardson Electronics Ltd. since September 1989 and has been its Director since 1965. Mr. Richardson served as the...


CEO Compensation Analysis

Compensation vs Market: Edward's total compensation ($USD1.23M) is about average for companies of similar size in the US market ($USD1.72M).

Compensation vs Earnings: Edward's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RELL's management team is seasoned and experienced (10.2 years average tenure).


Board Members

Experienced Board: RELL's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Richardson Electronics, Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Richardson Electronics, Ltd.
  • Ticker: RELL
  • Exchange: NasdaqGS
  • Founded: 1947
  • Industry: Technology Distributors
  • Sector: Tech
  • Implied Market Cap: US$211.753m
  • Shares outstanding: 13.66m
  • Website: https://www.rell.com

Number of Employees


Location

  • Richardson Electronics, Ltd.
  • 40W267 Keslinger Road
  • PO Box 393
  • LaFox
  • Illinois
  • 60147-0393
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/02/26
Annual Earnings2021/05/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.